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Atlassian to cut roughly 10% jobs in pivot to AI
Atlassian will cut 1,600 jobs globally, with 30% in Australia, to invest in artificial intelligence and enterprise sales, expecting $225–236 million in related charges.
- On Wednesday, Atlassian CEO Mike Cannon-Brookes announced the company is cutting 10% of its workforce, or about 1,600 jobs, to self-fund further investment in AI and enterprise sales.
- Market pressures and competitive threats from generative AI drove the decision, as analysts have included Atlassian in a list of firms threatened by the "SaaSpocalypse"—the theoretical collapse of SaaS business models.
- Impacted employees will receive a minimum 16-week separation package plus a $1,000 technology stipend, while Chief Technology Officer Rajeev Rajan will step down after nearly four years.
- Shares rose nearly 2% in extended trading following the announcement, though the notification process drew criticism as staff were informed of their status via email within 20 minutes.
- Cannon-Brookes told staff the firm is reframing itself as an "AI-first company," and management will hold a company-wide town hall next week to address further questions about the restructuring.
51 Articles
51 Articles
Atlassian lays off 10% of staff, or 1,600 employees, as AI reshapes software Work - Tech Startups
The shift AI is bringing to the tech industry is starting to show up in payroll. Enterprise software giant Atlassian announced it will cut about 1,600 jobs, roughly 10% of its global workforce, as the company redirects resources into artificial […] The post Atlassian lays off 10% of staff, or 1,600 employees, as AI reshapes software Work first appeared on Tech Startups.
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SBS Finance Editor Ricardo Gonçalves speaks with Tom Gilbertson from Loftus Peak about the future of AI and the workforce and what it means for investors as Atlassian becomes the first major Software as a Service to slash jobs; Trent Sauders from CBA details why the bank is now predicting the RBA will lift interest rates two more times this cycle; and Angus Geddes from Fat Prophets shares his thoughts on the investment environment as the war in …
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